Gammon Lake pushes Ocampo resource above 1m oz.

Extensive exploration by Gammon Lake Resources (GAM-T) at its Ocampo gold-silver property in Mexico has paid off handsomely in new ounces.

Watts, Griffis & McOuat (WGM) now estimates Ocampo’s total measured and indicated resources to be 21.7 million tonnes grading 1.44 grams gold and 57 grams silver per tonne, equivalent to 1 million contained ounces gold and 39.6 million contained ounces silver. A further 5.8 million tonnes of 1.7 grams gold and 86 grams silver lie in the inferred category.

The new estimate encompasses data from 26,000 metres of drilling carried out by Gammon last year within the historic camp, and it uses a cutoff grade of 0.5 gram gold-equivalent, a 50-to-1 silver-to-gold ratio, and prices of US$260 per oz. for gold and US$5.20 per oz. for silver.

In 1997, before Gammon’s involvement at Ocampo, resources in four deposits stood at 5.9 million tonnes containing 410,000 oz. gold and 18.7 million oz. silver (T.N.M., Nov. 27-Dec. 3/00).

Gammon also reports that recent bottle-roll tests by Reno-based Kappes, Cassiday & Associates have yielded average recoveries of 97.1% for gold and 83.4% for silver.

A prefeasibility study is under way at Ocampo under WGM’s supervision. The study will include more metallurgical work by Kappes, as well as results from ongoing drilling of newly identified targets.

Gammon says the property has demonstrated its potential for multiple gold-silver deposits exploitable by both open-pit and underground methods.